Title: Benchmarking Indian SMEs: a DEA approach

Authors: Rohita Kumar Mishra; Sanjay Pal

Addresses: Entrepreneurship Development Institute of India, Via Ahmedabad Airport and Indira Bridge, P.O. Bhat, Gandhinagar, Gujarat, India ' Entrepreneurship Development Institute of India, Via Ahmedabad Airport and Indira Bridge, P.O. Bhat, Gandhinagar, Gujarat, India

Abstract: The study is to benchmark Indian small and medium enterprises (SMEs) through data envelopment analysis (DEA) to predict the performance of SMEs for effective decision making. Forty-one Indian SMEs who are producing auto components are chosen for benchmarking purpose. The peer group and peer weights for the inefficient SMEs have been identified. This is useful for benchmarking for the inefficient DMUs. The SMEs can identify the parameters in which they lack and take necessary steps for improvement. The peer group for the inefficient SMEs indicates the efficient SMEs to which the inefficient SMEs are closer in its combination of inputs and outputs. It assist the managers to predict the performance of individual DMU based on input consumed and generate various 'what-if' scenarios. It provides a comprehensive methodology for improving the performance of SMEs in India.

Keywords: benchmarking; data envelopment analysis; DEA; decision making units; DMUs; small and medium-sized enterprises; SMEs; India; firm performance; automotive components; component suppliers; automobile industry.

DOI: 10.1504/IJPMB.2017.084907

International Journal of Process Management and Benchmarking, 2017 Vol.7 No.3, pp.305 - 331

Available online: 26 Mar 2017 *

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